Three militants, including a wanted Lashkar-e-Taiba (LeT) commander, and a policeman were killed during an encounter between ultras and security forces in the city Wednesday, prompting authorities to close down schools and snap mobile internet services.

Police assisted by the Central Reserve Police Force (CRPF) launched a cordon and search operation in Fateh Kadal in downtown area of the city following a specific intelligence input about the presence of militants there, a senior police official said.

"Cordon was laid in the early hours following specific intelligence input. Three militants, including Mehrauddin Bangroo, were killed in the encounter," Inspector General of Police (IGP) Kashmir Swayam Prakash Pani said.

The other two militants have been identified as Fahad Waza and over ground worker Rayees, son of the house owner where the encounter took place.

The IGP said Bangroo was involved in several killings in Srinagar and was the key coordinator for the Lashkar in the city.

"Bangroo's elimination is an important achievement for security forces," Pani added.

Giving details of the operation, police officials said a siege was laid around the house where the militants were hiding.

"As soon as the police barged inside the house, the policemen came under a heavy barrage of firing from the militants, resulting in injuries to one jawan, who succumbed later," the officials said.

They said the security forces responded to the firing of militants in equal measure and in the heavy exchange of fire, the house, where the ultras were hiding, got destroyed.

"The militants managed to run out of the house and tried to enter into an adjacent house, but were killed in the street," they added.

The policeman killed during the operation was identified as constable Kamal Kishore.

A wreath-laying ceremony was held for the slain policeman at the District Police Line here before his mortal remains were sent to his native place.

The district administration has closed all schools and educational institution in the city as a precautionary measure and internet services on mobile have also been snapped.

Meanwhile, clashes broke out in several parts of the old city after the encounter as miscreants pelted stones at the security forces, the officials said.

They said curfew has been imposed in some pockets of the city to maintain law and order.